Leading Change: Organizational Strategy and Behavior Report

This report delves into the critical aspects of leading change within organizations, focusing on the impact of internal and external drivers on organizational strategy and operations. It begins with a comparative analysis of two UK-based tour operators, Thomas Cook and Cosmos Tour, highlighting how they are affected by market dynamics, technological advancements, and competitive pressures. The report then evaluates how these drivers influence leadership, team dynamics, and individual behavior, emphasizing the importance of adapting to customer needs, technological innovation, and competitive landscapes. Furthermore, it examines the negative impacts of change on organizational behavior and proposes measures to mitigate resistance and foster a smoother transition. The report also identifies barriers to change and their influence on leadership decision-making, providing insights into different leadership approaches for navigating change. The conclusion summarizes key findings and underscores the importance of proactive change management for organizational success in a dynamic business environment.

UNDERSTANDING AND
LEADING CHANGE

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1 ...........................................................................................................................................2
P1. Comparison between two organisation with impact of change on an organisational
strategy and operations due to internal external drivers in business environment......................2
P2. Evaluation of ways through which internal external drivers of change affect leadership,
team and individual behaviour....................................................................................................4
P3 Measures that can be taken to minimise the negative impact of change on organisational
behaviour.....................................................................................................................................7
TASK 2............................................................................................................................................8
P4 Different barriers for change and their influence on leadership decision making................8
TASK 3..........................................................................................................................................10
P5 Different approaches of leadership while dealing with change...........................................10
CONCLUSION..............................................................................................................................12
REFRENCES.................................................................................................................................13

INTRODUCTION
Business environment is dynamic in nature and it gets changed according to external and
internal factors. In today’s scenario, company is required to scan all the alterations that took
place in the modern world due to invention of innovative technology. Leaders need to allocate all
the opportunities and threats that arise because of high competition (Aslan and Reigeluth, 2013).
In today era customers consider as a king of external market and producer has to produce
according to demand and preference of them. In this report, there will be discussion on the
changes with respect to internal and external drivers, importance of leadership, negative impact
of organisational behaviour and barriers that affect the business decision making. Here, two
companies are taken i.e. Thomas Cook and Cosmos tour; both are UK based leading tour
operators with major objectives of providing quality services and promoting Great Britain. These
two firms need to concern all the external leading changes that affect their working culture and
productivity.
TASK 1
P1. Comparison between two organisation with impact of change on an organisational strategy
and operations due to internal external drivers in business environment
Changes in business occur due to modification in internal policies, procedures and
strategic operations of company. These alterations either have positive or negative impact on the
internal working environment of company. In many conditions, employees are highly motivated
as that enhance their skills, personality and contribute in achieving individual own objectives.
Negative consequences arise at the time when most the employees in organisation are against all
the modification made in organisation structure and business process. Therefore company top
management need to formulate such strategies and programmes that help in beating all the
competitors in that business line for better growth and development (Brown, 2012).
For example: Thomas cook and Cosmos Tour are leading tour operators in UK country
but both of them are affected by all the internal and external drivers that impact on organisation's
strategy and operations. Today in tour businesses various online start-ups came that offer
attractive tour facility along with affordable hotel room and fine dining environment. That
enforced all the customers to switch towards online services. After considering all the above
drivers, there is need for Thomas Cook to prepare such tour policies which are best suitable for

customers. On the other hand, Cosmos Tour is a small tour operator of UK and so, chances of
risk related to sustainability are more due to high competition that they faced from large
organisation. Major changes in between Thomas Cook and Cosmos Tour are stated as below:
Basis Thomas Cook Cosmos Tour
Change in external factors This company works on large
scale and so it is natural their
working style is affected by all
legal, political and economic
conditions as well as customer
perspectives. All these
frequent modifications affect
the internal strategies and
induce strategic level to make
changes in their set objectives.
It is a small sized tour operator
company and so, there is less
chances of impact in their
policies because they operate
at micro level.
Organisation structure This company is diversified in
various places and so any
modification in organisation
hierarchy impact on all
branches. There is always risk
of miscommunication at the
time when company forms a
policy with definite
perspectives and leaders think
on different perspectives
which affect the whole
organisation structure.
Cosmos Tour is small sized
organisation affected by all the
micro level components.
Change in organisation
hierarchy is very difficult for
them because it incurred heavy
cost and loss of productivity.
Innovation in technologies In today competitive world
whether company having good
brand image is also affected
by innovative technology
Cosmos Tour is a small sized
company having limited
capital. Therefore, it is
impossible for them to use all

coming in external world. In
order to maintain sustainability
in the eyes of customers,
company requires to spend
much on research development
department.
the resources in innovative
inventions.
Lack of communication In big organisations, hierarchy
is divided in three parts and so,
it is difficult for top level to
understand the grievances of
low level due to changing
environment. Leader due to
internal conflicts ignore the
side effects of changes.
In small company, chain of
communication is informal.
There is always the risk of
disputes between employees
due to wrong rumours and
politics at micro level.
For dealing with all such difficulties; both the above companies are ready for all the
upcoming changes that arise due to drastic changes in business environment (Doppelt, 2017). If
company remains in competition, there is the need to look for ways to do things more efficiently
and cost effectively. Changes are the part of business so facing all the modification without any
future problems . Two things they have to consider are: Strategy: Organisational changes come with all the positive and negative impacts that
every company has to deal with. It is the duty of leader to understand all alterations and
make strategies that motivate all employees and create harmony in working environment.
To beat all the external impacts, company focuses on PEST analysis.
 Operations: Leaders are the inspiring personality for all employees. It can be effective
through new technology which brings outcomes.
P2. Evaluation of ways through which internal external drivers of change affect leadership, team
and individual behaviour
Leadership is a way of influencing the behaviour of individuals by doing inspiring work
that motivate others. Change management is that department which described all the appropriate

measures and mechanism through which company understand the impact of external
environment. This helps the organisation in exploring various opportunities and gaining profits.
Every alteration in business strategy affects both; the leader and his team members. So, the most
important duty of leader is to adjust with all circumstances. The most significant element under
this include all the internal external drivers of changes that bring lot of clashes in the mind of
individuals (Fyke and Buzzanell, 2013). Therefore, this is a stage where leaders has to linked
their ideas with employees needs and organise a training program where he or she discuss all the
matters that impact their organisation performance. There are various internal and external
drivers that affect leadership and individual behaviour:-
External Drivers
 Customer led drivers:- These drivers decide the success and failure of business. The
question arise in the mind of analyst that how much particular company products and
services satisfy the customer need. For example Thomas cook engaged in tour business as
well as hotel sector also so to remain in competition they need to satisfy their customers
according to changing environment.
 Technology led drivers- This driver shows how particular company expert in the field of
innovation and up-gradation (Jones, 2011). For gaining competitive advantage business
must discover new ideas, technology over competitors.
 Competitors led drivers- At the starting point of business first challenge faced by
entrepreneur is to enter in competitive market. Now a days due to high competition small
company operate at a large level. Thus thomas cook has to concern all the factors
properly to remain stable in this market.
 Government led drivers- Policies and procedures made by government affect the stability
of running business. Sometimes complex legal changes impact on basic objective of
company. Thus, Thomas cook and cosmos has to organise PEST analysis to deal with all
the circumstances, so they frame suitable strategies and reduce all the harmful effects on
leaders and their team members. Economy led drivers- They are related to all the economic system, condition prevail in
particular country. Situation of inflation, unemployment affect the working environment
of company. Thus, Thomas cook and cosmos has to consider all the factor that affects the
leadership and individual behaviour (Latham, 2013) .

Internal Drivers Quality products and services:- In order to maintain goodwill in market leader of
company need to concern on quality of products and services they are offering to their
target audience. For example Thomas cook is large sized tour company so leaders of
company has to focus on offering such tour facility that satisfied them. Innovation:- Today all the company spend their money on research development sector
in order to get best innovative techniques that prove successful and give higher returns in
future. For example Thomas cook need to innovative such products and services
especially in niche market which provide competitive edge over competitors. Organisation culture:- Whatever the culture company adopted define their class and
standards (Mukherjee and. et. Al 2012). Ethical culture enhance the positive behaviour
between leader and their followers otherwise leads conflicts in organisation. Financial management:- Leaders has to concern on all factors that help company in
optimum utilisation of financial resources. Lack of financial facility become hurdles in
upcoming projects of company. Employee morale- This factor wholly depend on the leader quality that how beautifully
influence their team members that enhance their morale at the time of achieving their
daily targets. For example Thomas cook and cosmos tour engaged in same business so
leader need to concern all the monetary and non monetary factor that increase employee
morale. SWOT Analysis- To know the actual position of company whether financial or
operational company require to start SWOT analysis so effective actions can be raken
place for better future results.
After that following are the important drivers for change affect leadership:- Goal setting:- Changing in external internal drivers affect the goals of organisation so
leaders need to concern all the factors that help in achieving the organisational objectives
(Nazir and Naqvi, 2012). Effective communication:- If communication at all levels is effective and according to
the expectation of internal employees. Therefore it is easy for leader to discuss the vision
of company. For example vision of Thomas Cook is to become most successful tour
company in UK for superior leadership is important.

 Passion, integrity and motivation factor:- All these three component in leadership are
the important drivers that bring positivity at the time changing environment.
P3 Measures that can be taken to minimise the negative impact of change on organisational
behaviour
Many times it has been seen that changes brings negative or supportive impact according
to different perspectives. Thus it is a duty of leaders to manages all the situation in such a way
that minimise all the negative impact of change on organisation behaviour that give better
outcomes for company.
Modification in working style impact negatively in individual thinking because of they
resist the changes (NHS England, 2016). So for effective implementation of all alteration it is
important for change management to take appropriate steps in order to minimise negative impact
like resistance to change in organisation behaviour: Creation of pathway: It is important for organisation to make a systematic path of
communication so that leaders easily transfer all; the information to employees about all
new initiatives. Explain about plans:- Leadership always use informal manner so that all employees
express their opinions, view points in respect to possible changes made in organisation
plans. This motivate employee morale and productivity. Participation in meetings and seminar groups:- one of the effective ways to deal with
change and remove all the negative impacts is taking active participation of employees
and leaders in seminars an group meetings. Therefore it is easy to discuss all the
negative doubts that occur in their mind regarding modifications.
 Implementation and evaluation of suitable changes:- under this leaders of different
department has to consider that all the changes that made in goals and objectives ate
effectively implemented or not (Nickerson, 2010).
Thomas Cook is a largest tour operator company also deal in hospitality required to
implement this strategy in business by merging all the theories and principles that help in
effectively implementation of all modifications. Thomas cook use Burke Litwan model which
describe about the change and effect relationship between 12 organisational dimensions which
are associated as key factors. All the changes related to external factors need to analyse correctly
for better outcome in future.

TASK 2
P4 Different barriers for change and their influence on leadership decision making
There is different barriers in organisation that affects working style of employee. There
are good as well as bad impact of change in organisation. Sometimes these changes are not
accepted by workers and few times these changes are not accepted by top level management of
the organisation. There are many changes take place in industry, but it is not necessary that they
all are accepted by company (Nkomo and Kriek, 2011). Changes can also be applied if there are
convenient for culture of organisation.
To make any changes in company Thomas Cook it is must that there should be proper
planning done and further effects has to be analysed by top level management. There is
requirement of time as well as cost to apply any change in operations. There are different
employees from different culture in Thomas Cook, it requires to be take care that any change in
culture of company does not conflict in rituals of employees. If so than management have to
modify their policies, otherwise it creates demotivation of personnel. For any change it should be
beneficial for company in form of profitability, productivity and customer satisfaction. Change in
technology will affect the performance of employees. It also makes them feel pleasure that it are
aware of latest technique.
Self-efficiency perceptions and resistance to change
Employees are the component through which company's accomplish their task. Hence it
is must that they accept the changes. Manager has to motivate employees to work under
changeable environment. Some employees does not to work with new and different ways this
gives barrier for adopting change in company (Nowell and Harrison, 2010). Different person
have different thoughts regarding changing environment. Some of them may feel insecure in
case of inefficient performance.
Force field analysis
According to (Parsons and Cornett, 2011) employees does not feel pleasure to work
under forceful environment. There is requirement that changes are applied to organisation and
they are appreciated to work under it with associated benefits. Hence this proves to be barrier in
decision mak8ing for management.
Case study

In Thomas Cook, employees are gathered at a place and any change in environment are
discussed. It is important that they are provided with case study so that they may know about
different changes taken place in other firms (Aslan and Reigeluth, 2013). After then their opinion
are asked. There are difference in opinions but then it is difficult for management to come out at
final decision. This creates hurdle in making policies.
Situational resistance to change
Sometimes there is requirement of changes in working style for completion of particular
task. This affects the performance of personnel and it gives chance to employees to know what
is right way of achieving task.
Lack of communication
Communication is the way through which information and instructions are delivered
from top level management and subordinates. If there is lack of proper communication then there
may because of inefficiency in working. Personnel are not aware of big issues occurring in
organisation. This cause feeling of unimportant to employees, it affects decision making.
Employee resistance
Some employees are happy with their job profile and working style. They do not want to
change it as they do not like to accept new techniques, this affects decision making of company
(Brown, 2012). Such employees do not want to learn more and new things.
Planning
There are many different activities in Thomas Cook about which company has to think
and then make strategies. To apply any change in company it is important that proper planning
should be their so that there is proper understanding in the mind of employees for what would
happen. There is requirement of time ton plan, this causes diversion of concentration to other
important matters.
Lack of leadership
It is very important to lead employees regarding new things happening. For this there can
be training program conducted which help them to learn new things. In case of no leadership
employees are not aware that how this change is beneficial for them.
There is specific ideas behind every company's objective, hence employees are also well
versed about such mission. It is responsibility of leader to provide proper guidance that
motivates them to work with best efficiency. If there is no proper flow of responsibility there is

confusion in accountability and authority delegation. Sometimes there are some personal
conflicts also among employees which affects decision making of management. After applying
any change it is important that there is analysis of activities of personnel so that corrective
actions are taken place (Brown, 2012). At the same time it is important that they are
communicated to employees also, this brings new energy in them.
TASK 3
P5 Different approaches of leadership while dealing with change
Thomas Cook is an organisation who have vast chain of tour and travels business. There
are large number of employees working and getting directions from management. Hence it is
important for top level management to provide guide to subordinates, it helps in improving
employee and employer relationship. Leadership style used by Thomas Cook are as under:
 Participative style: This style provides equal opportunities to subordinates of Thomas
Cook also to take part in decision making, but final decision is of top level management.
This not only boost their confidences but company also get new and innovative ideas.
This makes environment of free flow of information in whole organisation. This style is
also known as democratic.
 Autocratic style: This approach is opposite of democratic style. There is no right to
subordinates to provide views regarding any matter. Managers and leaders have all the
rights vest in themselves to come with final decisions. Employees of Thomas Cook are
bind by the decision of leaders, there is no scope to challenge it. In case of any decision
making under this style there is requirement of proper counselling.
Situational leadership theory is also known by the name of contingency theory. This is
launched by Paul Hersey and Ken Blanchard in 1969. it states that there is difference in
behaviour of individual as per change in external or internal factor. There is change in working
style and leadership style of leader as well. Under this theory there are two types of demeanor.
They are- directive and supportive behaviour. There are different attitude as per change in
situation. To become good leaders, it is important to possesses flexibility in its nature (Doppelt,
2017).
In the context of Thomas Cook Situational leadership is very beneficial technique as they
are developing their business and tries to make goodwill in market. As company wants to grow
hence it is important that they should apply new and innovative ideas. This provides change in

environment and working style of employees, this makes employees feel interesting while
working.
 Any company can make changes but it is important that there should be proper guidance
by top level management that how that change is beneficial for company and employees
also. This not only motivates them to accept it but also improves efficiency.
 But it is not necessary that all the employees accept that changes. There are employees if
do not accept such alterations and wants to work with the same previous approach. There
should be proper training and leaders has to take care of problems facing by the workers.
 Thomas Cook have vast variety of worker. So it is more important for them to give
proper guidance to employees in case of any change (Fyke and Buzzanell, 2013). It
gives more emphasis of their growth and development.
Kotter's 8-step Change Model
This model is beneficial for growth and development of employees as well as company.
John Kotter provides an theory which helps in creating comfortable environment in case of
changes taking place. This is an eight step model in which starting stage is taking about fair
surrounding in case of changes take place, after it there is talk about changes how beneficial for
company and lastly it talks about how to implement that change.
Increase urgency- It is important that leaders has to tell about the requirement of such changes .
There is requirement to deliver the pro and cons of such changes. Manager has to motivate
employees.
Build guiding team- There is requirement to create a team in organisation. Employees are
motivated by working in team it provides them chance to know how people think about such
alteration.
Develop the vision- there is some reason behind every change . This gives employees an
direction to work. Manager has to develop such vision which are beneficial for employees as
well, which will sound more interesting to them (Gupta, 2011).
Communicating- After setting goals of such change it is important that it must be delivered to
staff in the company. It is necessary to communicate the motto behind such alteration.
Employees are feel more energetic if there is benefit of them as well.

Remove hurdle- After communicating it is important for management of Thomas Cook that in
case of any query it is important to remove it (Hintz and Bahia, 2013). There can be different
problems to different employees.
Create short term wins- To motivate employees, it is important that company has to deliver short
as well as long benefits. This makes change more beneficial and in case of rigid to last idea then
leader try tom know problem in switching.
Don't let up- Every change need not to be accepted by personnel. Some employees tries to show
the benefits of last ideas, this may divert other employees also.
Make change stick- Still company has to apply such changes as much as possible. There can be
good opportunities that employees also get benefits after some time (Jones, 2011).
Thomas Cook apply such changes Kotter's theory which proofs to be beneficial for them.
There are many new services offered by organisations but there is requirement to alter their
policies as per need of customer. These alteration are the reasons of change in working style of
company also. Such changes make employees satisfied which make company growth rate
constant. Hence manger has to motivate employees by saying that co0mpany's growth will
definitely provides rewards to them.
CONCLUSION
From the above report it is concluded that there are different external and internal driver
if help in making changes accepted by organisation. There are few factors which affects the
leadership also, there is requirement of motivate employees to accept it, through making things
liked with individual's personal development. Leader has to minimise the negative impact of any
change taking place in organisation. If there is problem to any individual from alteration then
manager has to resolve such doubts. Environment of organisation also motivates employees to
work efficiently and effectively to accomplish assigned task. Technological, political, social, etc.
are external barriers which affects the performance of employee. There are different approaches
of leadership used to apply in organisation, which are applicable in organisation as per culture. If
there is alteration in plans and policies than it improves employees performances and company's
goodwill. Kotter's 8 step change model helpful in creating an environment which accepts
changes and achieve specified target allotted.

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